Astucia SolarLite road studs: A contribution to road safety

With 10 times more visibility than conventional 'cat eye' road studs, the SolarLite studs can make a significant impact on improving road safety

Astucia's SolarLite solar-powered road studs, designed in the UK, are making a significant contribution to road safety around the world, and if used in India, they could probably help reduce the number of accidents on our roads.

These road studs offer a significant boost in night-time and/or poor weather visibility, compared with the traditional ‘cats-eye’ road reflectors, or lines painted down the side of roads. The SolarLite studs are now in use in approximately 120 locations across the UK, in the Netherlands, France, Australia and in South Africa. Road safety authorities have, in several cases, reported reductions in night time accidents of well over 70% since the installation of the new road studs.

Astucia SolarLite solar-powered road studs were originally developed by a former London fire-fighter, Martin Dicks, and these are totally self-sufficient. They store energy collected by a solar panel during daylight, then their built-in Light Emitting Diodes (LEDs) automatically illuminate after dark, providing drivers with up to 900 meters of visibility.

The SolarLite road studs are said to be vastly more effective than the traditional, retro-reflective, passive road studs which rely on being illuminated by the headlight beam of the approaching vehicle, which at best has a useful range of 90 metres. The increased visibility given by the SolarLite road stud gives more time to drivers to react to an emergency situation – especially helpful on Expressways, where vehicles tend to be driven at higher speeds.

In addition to the studs, the next generation of smart road markings are also being tested. These can automatically illuminate, to warn of bad weather or slow-moving traffic ahead, or can help reduce motorway hold-ups by automatically marking additional lanes to boost capacity.

Astucia’s vision is to reduce casualties and fatalities on roads throughout the world, and to reduce road congestion by safely increasing the capacity and effectiveness of road networks. The company’s global distribution network includes Australia, Belgium, Canada, Denmark, Finland, France, Germany, Greece, Holland, Ireland, Italy, Japan, Malaysia, Middle East, New Zealand, Mexico, Norway, Spain, Switzerland, United Kingdom and the USA. And, we hope, their road studs will soon be used on Indian roads too!

Gujarat: The new export hub for Indian auto companies?

The State of Gujarat is, it seems, on its way to becoming an important auto export hub in the country, with many auto manufacturers coming in to invest in its ports, to set up automobile handling terminals.

The Mundra port in Gujarat, which was developed by the Mundra Port and Special Economic Zone (MPSEZ), will have a car export terminal operational in the first quarter of 2009. Meant exclusively for Maruti cars, the terminal is being set up at a cost of about Rs 100 crore.

India's first dedicated car export terminal at the Mundra port will be able to handle 250,000 units of Maruti cars per annum, which would be raised to 400,000 units by the year 2010. Maruti Suzuki already exports 40,000 cars per annum, and wants to increase this figure to 200,000 units by 2010.

Mitsubishi Motors is also said to be looking for port facilities in Gujarat – the company is considering locations like the Vansi Borsi port and the Maroli port, where it can set up a car-handling terminal. Mitsubishi is also looking at options for setting up exclusive terminals at existing ports like Mundra, Pipavav, Okha or Kandla.

Currently, Mumbai and Chennai are the two major ports that handle auto exports. Tata Motors, Maruti Suzuki, Ashok Leyland and Eicher Motors depend on the Mumbai port, while Hyundai and Ford export cars through the Chennai port.

Hero Honda's Daruhera plant closed, workers go on strike

Hero Honda has been hit by a workers' strike, forcing the closure of its manufacturing unit at Daruhera, in Haryana. Work has stopped at the factory since today morning, after a strike broke out – the issue being that Hero Honda management discontinued services of about 50 contract workers. These workers had, apparently, not agreed to be shifted from one production line to another.

According to some reports, Hero Honda workers have been opposing the company's move to shift a large part of its production to its newly opened plant at Haridwar, where the company plans to produce its high volume models like the Splendor and the Passion.

M&M to raise additional resources through FCDs

The Board of Directors of Mahindra & Mahindra Limited, at its meeting held on 3rd May 2008, have approved raising additional resources through issuance of 9,395,974, 9.25% p.a. unsecured fully and compulsorily convertible debentures (FCDs) of the face value of Rs.745 each, aggregating Rs 7,000,000,630, to Golboot Holdings Limited, an entity controlled by Goldman Sachs.

Each FCD will be convertible into one equity share of Rs 10 each in the company, at a price of Rs 745 per share (including premium of Rs 735 per share) in accordance with Chapter XIII of the Securities and Exchange Board of India (Disclosure & Investor Protection) Guidelines, 2000.

The FCDs shall be convertible into equity shares at anytime within 18 months from the date of allotment of FCDs at the option of the investor, and mandatorily convertible into equity shares on the date falling 18 months from the date of allotment.

The issue price represents a premium of over 7.91% to the closing price of Rs 690.35 per share traded on Bombay Stock Exchange Limited on 2nd May 2008. With this investment, Golboot Holdings Limited shall own 3.68% of the post issue paid up equity share capital of the Mahindra & Mahindra Limited.

The company will utilise the amount raised through preferential offer, towards its auto and tractor businesses. Kotak Mahindra Capital Company Limited was the exclusive financial advisor for the above transaction.

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Roadblocks for emerging auto-hub at Chakan Phase II

Last year, companies like Renault-Nissan and Honda Motors had given up the idea of setting up their upcoming Greenfield projects in Chakan (near Pune), and had taken their projects elsewhere. And it seems the situation remains unresolved, as the Maharashtra government has been unable to move ahead on acquiring land, which would allow the Maharashtra Industrial Development Corporation (MIDC) to allocate plots of land to automakers.

Chakan already has about 1,300 hectares of land, which has been sold to companies like Bajaj, Volkswagen, Mercedes-Benz, JCB and several auto component makers. The region, including the neighbouring Talegaon, is slated to produce 1.8 million four-wheelers per annum.

For further expansion, there is Chakan phase II, for which a 1,400 hectare tract of land was identified almost 10 years ago. However, the procedure for acquiring the land has still not been completed, which is why MIDC can’t move ahead on allocating the land to automakers.

Given this air of uncertainty, it’s now being said that companies like Daimler Hero Motor Company, which has identified Chakan as one of the possible locations for its Rs 4,400 crore commercial vehicle joint venture project, might go elsewhere. While government officials say the land will be acquired and given to MIDC before the end of this year, whether that really happens is anybody’s guess.

Tata Motors signs JV with Punjab Govt for setting up an automotive school

The Punjab government, in a joint venture with Tata Motors, will set up an automotive and driving skills institute in the Mukatdar district. The State Institute of Automotive and Driving Skills (SIADS) will be set up in Mahuana village, at a cost of Rs 13 crore.

The government will provide 14 acres of land to set up the SIADS, which would be run by a registered society, with equal number of representatives from Tata Motors and the Punjab government.

Ford plans to make India its APA hub for engines

Ford India will start making engines for export to Asia-Pacific and Africa regions, within the next two years

Ford India plans to make India its strategic manufacturing hub for engines in the Asia Pacific and Africa (APA) region. Ford will export petrol and diesel engines from India to South Africa and other countries in the APA region in the next two years. From the current 60,000 engines per annum, Ford India wants to increase its engine production capacity in Chennai to 250,000 engines per annum. This is part of Ford’s strategy to invest Rs 2,000 crore, to increase the production of engines and vehicles in India by the year 2010.

Michael Boneham, the new president and MD at Ford India, says that Ford wants to source engines from India for adjoining markets. He said that while locally-produced engines are already meeting all of Ford India’s domestic requirements, the company wants to start exporting engines in the next phase of expansion. The company wants to take advantage of India’s low-cost operations, and produce engines that are price competitive around the world.

With it market share in India having fallen to 19% in FY08, Ford India also wants to introduce new cars in the Indian market, and implement new marketing strategy to improve its position in the Indian market. For this, the company may look at introducing the brand-new Fiesta and its other global cars in India, to take on the likes of Toyota, Honda, Skoda and Hyundai.

Motorists want stop-start engine technology savings

The Mercedes-Benz A-class will soon feature start-stop technology

In a survey carried out in the UK by Motorpoint, three out of four drivers say they would buy a car that automatically cuts and restarts the engine in traffic. This start-stop technology is already in production, but suffers from restricted availability.

Fuel cost saving of up to 8% in urban driving is the top reason for the demand of this technology, though the technology also offers a parallel reduction in CO2 emissions. With companies like Honda and Skoda offering the latest auto technologies on their cars in India, it shouldn’t come as a surprise if the start-stop feature becomes available in India within the next two years.

In practice, the technology – essentially a beefed up starter motor and enhanced engine electronics – stops the engine when the driver comes to a halt, and takes the car out of gear. Pressing the clutch automatically restarts the car.

Today, only Citroen, BMW and Mini are offering stop-start on non-hybrids. However, most manufacturers are expected to introduce stop-start, on both manuals and automatics, over the next few years – either across the range, or on designated ‘green’ models.

MRF to invest Rs 90 crore on new plant in Tamil Nadu

With the new manufacturing facility, MRF will have a total of three plants in Tamil Nadu

Tyremaker MRF Ltd has announced that it has signed an agreement with the Tamil Nadu state government to set up a radial tyre facility in Perambulur, and for the expansion of two of its existing plants in the state. MRF has two other factories in Tamil Nadu, at Tiruvattiyur and Arakonam.

The company said it planned to invest Rs 90 crore towards setting up the new facility, and is acquiring nearly 290 acres of land for the plant. The Perambulur facility is expected to have a total capacity of 700,000 radial tyres.

Skoda India unveils new petrol variant of the Fabia

With the new 1.2-litre petrol engine, the Fabia will be able to avail excise duty benefits and will be cheaper to buy

With the Fabia quickly becoming the premium hatchback of choice with the motoring cognoscenti in the country, Skoda India has gone ahead and unveiled a new, cheaper variant of the car – the petrol-powered Fabia 1.2. The Fabia 1.2 is now available in Active, Classic and Ambiente trim levels, priced at Rs 4.86 lakh to Rs 5.80 lakh, ex-showroom.

While Skoda already had the Fabia 1.4 petrol in their India lineup, the 1.2 model has been introduced to take advantage of the excise duty benefits being offered to cars with 1,200cc or smaller engine capacities. Fitted with Skoda’s 1,198cc, 16-valve, DOHC, inline-four, the Fabia 1.2 is not likely to be as perky as the 1.4 model, but the 1.2 model’s cost advantage and perhaps its better fuel efficiency will probably be appreciated by some prospective customers.

The new Fabia will have dual airbags and collapsible steering wheel as standard features, while anti-lock brakes will be on the options list, so it’s likely to be a reasonably safe car. Colour choices will include candy white, cappuccino beige, brilliant silver, magic black, satin grey, corrida red, and tangerine orange.

Skoda India has sold over 3,500 units of Fabia till April 2008. The target sales of the Fabia product line is 10,000 units for 2008, wherein the share of the Fabia 1.2 MPI is supposed to be at 40 percent.

M&M records 58.5% sales growth in April 2008

M&M auto sales continue to be strong, but the East-European Dacia Logan, being sold in India as the Mahindra Renault Logan, has been a disappointment

Mahindra & Mahindra’s domestic sales in April 2008 stood at 19,392 units, as against 12,235 units in April 2007. The company announced that sales, including exports, grew by an approximate 56% in April 2008, with total sales of 20,030 vehicles, as against 12,867 vehicles in the corresponding period last year.

‘The year has commenced on a strong and positive note for Mahindra, with excellent sales numbers. We have further consolidated our leadership position in utility vehicles and recorded spectacular growth in all the segments. This is a clear validation of our customer-centric approach to business,’ said Rajesh Jejurikar, Executive Vice-President - Sales & Marketing, Automotive Sector, Mahindra & Mahindra Ltd.

M&M clocked total vehicles sales of 19,392 units in the domestic market in April 2008, as against 12,235 in the corresponding month last fiscal, a 58.5% increase! However, Mahindra Renault only managed to sell 1,713 units of the Logan in April 2008. With its relatively poor build quality and outdated styling – and hence poor reviews from some consumers and auto magazines – the Logan has not done as well as was earlier being anticipated.

Tata Motors: 38,149 vehicles sold in April 2008

Tata Motors sold a total of 3,650 Sumo and Safari MUVs in April

Tata Motors reported a total sale of 38,149 vehicles, including exports, for the month of April 2008, a decline of 5.8% over the 40,486 vehicles sold in April last year.

The company’s sales of commercial vehicles in April 2008, in the domestic market, were 21,001 units, an increase of 7% compared to the 19,607 vehicles sold in April last year. M&HCV sales stood at 11,248 units, an increase of 8% over April 2007. LCV sales were 9,753 units, an increase of 6% over April last year.

Tata Motors passenger vehicle business reported a total sale of 14,843 vehicles in the domestic market in April 2008, a decline of 12% compared to 16,842 units sold in April 2007. While Indica sales were over 10,000 units, wholesale billings were restricted to 7,430 units, a decline of 31.6% over April 2007. The Indigo family registered sales of 3,763 units, an increase of 43% over April 2007. Sumo and Safari sales, at 3,650 units, registered an increase of 9.3% over April last year.

The company exported 2,305 vehicles in April 2008, as compared to 4,037 vehicles in April last year, a decline of 43%.

TVS Motor targets 40 percent export growth in 2008-09

In the face of stiff opposition from Bajaj and Hero Honda, TVS continues to soldier on, even managing to post some encouraging sales figures in the last fiscal

South-based TVS Motor Co Ltd is hoping to achieve close to 40 percent growth in exports during the current fiscal. ‘Last year, we exported around 137,000 units and the expectation for the current fiscal is anything between 185,000-200,000 units. We are also looking at new overseas markets,’ said H S Goindi, TVS’ senior vice-president - international business and three-wheelers. He also clarified that about 85-90 percent of the exports are of motorcycles, and the rest are mopeds.

TVS had also launched three-wheelers in March this year, and Goindi says that the response has been good, and that the company has sold around 150 units till date.

On another positive note, TVS opened the new fiscal with 4.81 percent growth in sales – 109,937 units in April 2008, against 104,893 units in April 2007. In the last fiscal, TVS sold 58,202 motorcycles, up from 53,499 units of the year-ago period.

In the scooters and mopeds segments, the company sold 19,034 and 32,701 units respectively in April 2008, compared to 18,798 and 32,596 units respectively in April 2007. Exports continued their upward growth trend, with TVS recording an increase of 41.49 percent – 10,213 two-wheelers against 7,231 units in April 2007.

In order to further promote sales, TVS Motor has signed up with the All England Lawn Tennis Club (AELTC) as a licensee, and will bring out two limited edition scooters, designs of which will be inspired by the spirit of Wimbledon. These scooters will be launched to coincide with the forthcoming Wimbledon season.

Michael Boneham takes over as head of Ford India

With a new man at its helm, expect Ford India to also launch new cars shortly. Starting with this new and very good looking Fiesta, perhaps?

With effect from the 1st of May, Michael Boneham will be president and managing director of Ford India Private Limited. The earlier MD, Arvind Mathew, has been transferred to a new position in the US.

Currently, Boneham is the executive director – operations, at Ford India, and he is responsible for product engineering, purchasing, manufacturing and quality. In his new role of president and MD, Boneham will spearhead Ford India's expansion plans.

According to the new Ford India boss, the company will increase capacity from the current 100,000 units to 250,000 units by 2010, and will roll out new cars and new engine options for the local as well as overseas markets. Ford will be investing US$500 million towards expanding its operations in India.

BEML sets up shop in China

BEML wants to source cheaper components from China...

India's state-run earthmoving equipment manufacturer, Bharat Earth Movers Ltd (BEML) has opened an overseas office in Shanghai, China, for sourcing and marketing purposes. The office was inaugurated by BEML chairman and managing director, V R S Natarajan, the presence of the Consul General of India in China.

BEML, a Rs 30 billion company, is well known for its heavy earthmoving equipment for the mining and construction sector, railways, and defense forces. ‘By opening its China office, BEML would be sourcing critical components and machinery parts required for the manufacturing of its mining and constructions equipments, as also for the manufacture of wagons and rail coaches,’ said a company press release.

With the setting up of its new office in China, BEML hopes to promote its high-end mining equipment in the Chinese market, and also benefit from lower costs for sourcing components for its manufacturing operations in India. Also, BEML will look at exploring opportunities in countries like Uzbekistan, Kazakhstan and Ukraine, through its office in Shanghai.

GMI: Sales up 24pc in April

With rising sales, it's time for fun and games at General Motors India!

General Motors India (GMI) has reported a 24.34 percent jump in its domestic sales during April – 5,563 units, against 4,474 units in April 2007.

The sales in April comprised of 1,863 units of Chevrolet Tavera, 1,055 units of Chevrolet Aveo and Aveo U-VA, 393 units of the Chevrolet Optra, 1,963 units of Chevrolet Spark and 289 units of Chevrolet Captiva.

‘The ever increasing monthly sales of Chevrolet vehicles reflect the success story of the brand and is an additional testament to General Motors India's determined focus in bringing world-class products to our customers,’ said P Balendran, GMI vice-president.

GMI plans to increase its sales point to 125, with 135 service outlets across the country, by the end of this year.

HMIL: Sales up 36.71pc in April

The new i10 hatchback has been a winner for Hyundai...

At 21,501 units, Hyundai Motor India Ltd (HMIL) has reported a 36.71 percent jump in domestic passenger car sales during April 2008, as against 15,728 units in April 2007. The company's cumulative sales (including exports) during April this year were up 47.77 percent, at 40,001 units, compared to 27,069 units in the same month a year ago. HMIL’s exports for April accounted for 18,500 units, compared to 11,341 units during the same month previous year.

HMIL sold 17,334 units of hatchbacks Santro, Getz and i10, 2,668 units of Accent and Verna, three units of Elantra, 50 units of Sonata and nine units of Tucson during April. ‘HMIL sales for April had been robust and we feel that the budget has been a contributory factor,’ said Arvind Saxena, HMIL’s senior vice-president - marketing & sales.

Hero Honda sales up by 9pc in April

Hero Honda: Relentless growth, despite high interest rates and lack of readily available consumer finance

In the month of April 2008 – which marks the beginning of Hero Honda's 25th Year of existence – the company sold 286,252 two-wheelers, as compared to 262,544 units in the corresponding month last year, a growth of nine percent. Notably, this performance comes in the face of high interest rates and lack of readily available consumer finance.

According to a company press release, Hero Honda's new bikes – the CBZ X-treme and the Hunk – have helped the company double its share in the premium segment. Plus, with the company having set up a dedicated ‘rural vertical’ to reach out to potential customers in the rural areas, and a fast expanding distribution network, Hero Honda looks all set for relentless growth.

For the financial year 2007-08, Hero Honda reported cumulative sales of 3,337,142 two-wheelers, surpassing its previous year's tally. On the bottom line, Hero Honda reported a robust EBIDTA margin growth of 53% for the fourth quarter of 2007-08.

Last month, Hero Honda's 25th year got a befitting start with the commencement of production at its new manufacturing plant at Haridwar, Uttarakhand. The new plant has an initial installed capacity of 500,000 units, which will be scaled up to one million units by the end of 2008.

GM to build small, cheap car for India by 2010

The Tata Nano started it, the Bajaj-Renault announcement added fire to the frenzy, and now everybody wants a piece of the ‘smallest, cheapest car you can build’ market. The latest name to hop on to the bandwagon is General Motors India (GMI), with David N Reilly, President – GM Asia Pacific, recently having announced that GMI will manufacture a mini car in India, which could be priced at around Rs two lakh.

To be built at GMI’s upcoming facility in Talegaon (near Pune), the GM Rs two lakh car will carry the Chevrolet branding, and will be smaller than the Spark. However, in an empty, meaningless statement, Reilly also said GM would not be looking at competing at the Nano’s price-point, because that would compromise the GM brand! (When GM is anyway selling re-badged Daewoos and poorly engineered cars like the Aveo, what does the GM/Chevy brand stand for anyway??)

GM is investing about US$300 million in setting up its new manufacturing plant in Talegaon, where up to 140,000 small cars will be built per annum, which will augment GMI’s 85,000 unit per annum capacity and its plant in Halol, in Gujarat. Once the new plant start functioning at full capacity, GMI expects its products to account for 10% market share in the Indian car market.

Bajaj Auto bike sales up by 23.6pc in April

Bajaj Auto continues on a steady growth path this year

Bajaj Auto has reported a 23.6% growth in motorcycle sales during April 2008, at 203,081 units, against 164,304 units in April 2007. The company's total two-wheeler sales also rose 23.08% during the month, at 203,930 units, as compared to 165,692 units in April 2007.

Bajaj’s total three-wheeler sales went down by 26.47% at 17,913 units, as compared to 24,360 units in April last year. However, exports increased by 41.79% to 73,624 units, from 51,926 units in April 2007.

According to a Bajaj Auto statement, the company’s sales were strong in the XCD, Discover, Avenger and Pulsar series, which together grew by 34%. Bajaj will now concentrate on consolidating its position in the 125cc category, which it expects to represent 50% of the market in 2009. The company also expects to export over 800,000 units this year.

Bajaj is also likely to launch bigger, more powerful motorcycles this year in collaboration with Japanese bike maker Kawasaki, and with Austrian bike manufacturer KTM, in which Bajaj has already picked up a significant stake.

Maruti: April 2008 sales

For now, Maruti continues to be the leader in the Indian car market

Maruti Suzuki India Limited sold 59,539 vehicles in the domestic market in April 2008, up from 48,652 vehicles in April 2007. In all, the company sold 62,336 vehicles in April 2008, including 2,797 units of exports. (The company exported more than 53,000 units during fiscal 2007-08.)

Maruti’s volume in the domestic A2 segment grew by 27.3 percent, by 97.1 percent in the A3 segment, and by 25.9 percent in the C segment during the month, as compared to sales in April 2007.

Sales figures for April 2008:

M800 4,458
Omni, Versa 7,705
Alto, Wagon-R, Zen, Swift 43,121
SX4, Esteem, DZire 4,187
Gypsy, Grand Vitara 68
Total Domestic sales 59,539
Exports 2,797
Total Sales 62,336

Ashok Leyland not sure of being able to acquire Valeo

The acquisition deal is not likely to go through

Commercial vehicle manufacturer, Ashok Leyland has expressed doubts over being able to successfully close its bid to acquire French auto component manufacturer Valeo, saying there are many complexities involved in the deal. ‘We are still considering the deal, but we are not very sure whether we will be able to close it,’ said K Sridharan, CFO, Ashok Leyland.

‘Ashok Leyland is a complete commercial vehicles manufacturer and I don't think it will be possible to shift the focus to an auto component maker,’ said Sridharan. ‘I am not saying that it will not happen, as we have not completely closed the deal yet, but I really do not forsee a possibility,’ he added, and also said that Ashok Leyland had not invested much time and resources on the diligence process.

According to earlier reports, the Hindujas were pursuing the Valeo deal, which, if it went through, would have been worth up to US$1.5 billion.

Electric bikes get duty waiver, may cost less

Will more people be tempted to buy EVs if manufacturers reduce prices?

If EV manufacturers decide to pass on the benefit to their customers, the Indian government’s decision to waive off 8% excise duty on electric two- and three-wheelers is likely result in a price reduction of about Rs 1,500 to 2,500.

As of now, battery-powered two-wheelers are priced at between Rs 20,000 to 35,000 depending on range, power and other features. The cut in excise duty could make electric two-wheelers cheaper, allowing them to compete with 100-125cc petrol-engined bikes and scooters. With the rising prices of petrol, certain segments of the two-wheeler buying public will certainly like to opt for EVs, which are cheaper to run than conventional bikes.

About 130,000 electric vehicles – mostly small scooters – were sold in India in FY08, which is almost nothing when compared with the 9.8 crore petrol and diesel vehicles sold in India in the same period. With price cuts and the availability of better batteries – which will allow EVs to travel longer distances before having to be recharged – demand for electric vehicles could go up significantly in the next two years.

Renault-Bajaj small car still at least three years away

Renault-Bajaj will make this Rs 1.25 lakh rupee car, but it won't be ready before 2011

Carlos Ghosn, head of French automaker Renault, has said that at a time when the European car market is contracting, Renault is banking on doing well in emerging markets like Russia, Brazil and India, which are currently enjoying significant growth.

Ghosn further said that Renault, which is building a plant in Chennai, is on track for its US$2,500 car, which it will build in collaboration with Bajaj. The car would be ready to go on sale in the first half of 2011, he said.

In addition to its activities in India, Renault has also teamed up with AvtoVAZ in Russia, and will also start making battery-powered electric cars by the year 2012.

Kirloskar Oil to sell valves division of its auto components business

Kirloskar Oil Engines has announced that it will sell the valves division of its auto components business to Eaton Industrial Systems, for Rs 90 crore.

The agreement is subject to the approval of shareholders, the company said in a filing to the Bombay Stock Exchange, and Kirloskar’s board of directors have already consented to the conduct of a postal ballot for seeking approval of the shareholders for the sale.

Bosch Ltd. registers 12pc growth in Q1, 2008

Bosch Limited, the flagship company of the Bosch Group in India, has registered a growth of 12% for the quarter Jan-March 2008, despite a slowdown in auto sector. The company generated net sales of Rs 12,015 million in Q1 2008 Jan - March, registering a growth of 12.3% over Jan-March, 2007. But the PBT was down 9.8% at Rs 2,315 million in Q1, 2008, compared to Rs 2,566 million in Q1, 2007. The PAT stood at Rs 1,617 million, down 12% compared to Q1, 2007.

The EPS has also come down. For the Q1, 2008, it stood at Rs 50.5 per share, compared to Rs 57.3 per share in Q1, 2007. Bosch Ltd. has termed these results as below expectations, but hopes that as a result of Union budget measures for certain sectors of the auto industry, the Indian automotive market will pick up in the coming quarters, leading to better performance for the company.

About Bosch in India:

In India, Bosch is a leading supplier of technology and services in the areas of automotive and industrial technology, consumer goods and building technology. Additionally, Bosch also has in India, the largest development centre outside Germany, for end to end engineering and technology solutions.

The Bosch Group operates in India through four companies, viz, Bosch Limited, Bosch Chassis Systems India Limited, Bosch Rexroth India Limited and Robert Bosch Engineering and Business Solutions Limited. Bosch Limited is the flagship company of Bosch Group in India and operates in Automotive Technology, Industrial Technology and Consumer goods & Building Technology business sectors.

In India, Bosch set up its manufacturing operation in 1953, which has grown over the years to 11 manufacturing sites and four development centres employing some 18,000 associates and generating a consolidated revenue of over Rs 5,700 crore in 2007.

Tyre prices likely to go up again in two months

Prepare to pay more for the black stuff...

In the face of ever-increasing input costs, tyre manufacturers in India may have to hike prices again in about two months, to offset the recent spike in rubber prices. Earlier this month, Ceat and JK Tyre had raised their tyre prices by five percent, while MRF had increased prices by two percent.

According to rubber board data, rubber prices – which account for up to 60 percent of the cost of tyres – have gone up by more than 22 percent in 2008. High crude oil prices have pushed up prices for synthetic rubber, while natural rubber prices have gone up due to tight supply. In fact, prices for natural rubber may go up from the current Rs 117/kg to Rs 125/kg with the next few months, so no relief is in the offing for tyre manufacturers.

Electrotherm plans more powerful electric bikes

Electric bikes are the future, and Electrotherm are making sure they stay ahead of the adoption curve

Electrotherm (India), manufacturers of battery-powered two-wheelers under the Yo Bykes brand name, is planning to launch bikes with bigger batteries and more powerful electric motors, so that these electric bikes can compete with petrol-powered motorcycles of up to 125cc engine capacity.

To compete against conventional 125cc bikes, the company is in the process of setting up a new battery manufacturing plant in China to meet its battery requirements. The Chinese plant would mean lower costs for the customer – replacement batteries, which now cost Rs 6,000 will end up costing only Rs 4,000 or so.

BK Vaishya, senior vice-president, Electrotherm, says, ‘The response to battery-powered bikes has been encouraging, with the company selling about 46,000 units so far, priced at about Rs 40,000. We now expect to scale this number up to 100,000 units by the next fiscal.’ Vaishya also said that these numbers may grow much faster if the Indian government allowed lower VAT and other concessions for the non-polluting electric bikes and scooters.

According to various estimates, the market for electric bikes in India will stand at about 500,000 units in the next three years, which is still quite low compared to 1.5 million units estimated for China.

Incidentally, in a move that shows faith in the future of electric bikes, ICICI Venture recently picked up an equity stake in Electrotherm for Rs 82 crore. Now, Electrotherm’s engineers are working on developing battery-operated three-wheelers and other electric vehicles, to cater to a wider range of customers.

Volvo bags 240 city buses order from BMTC

These low-floor, airconditioned city buses from Volvo should be a boon for Bangalore residents

In addition to the 70 buses it had earlier delivered to the Bangalore Metropolitan Transport Corporation (BMTC), Volvo has bagged another order of 240 city buses from the State-run transport undertaking. BMTC had first decided to invest in modern, air-conditioned city buses from Volvo two years ago.

Volvo’s city bus in India is built on the B7RLE chassis, and the body is designed after the Volvo 8700 European model. The air-conditioned city bus features a low-set floorboard for easy entry and a wheelchair ramp. The 290HP Volvo engine meets Euro III emission norms.

As per the new order, Volvo will deliver 240 city buses to BMTC by the end of this year or latest by the beginning of 2009. BMTC intends to deploy about 40 of these buses between Bangalore’s new airport and the city centre, while the other buses will be deployed on various routes within Bangalore city.

In addition to Bangalore, Volvo city buses are also being used in Pune, Chennai and Mysore.

JK Tyre: Record Q2 results

JK Tyre & Industries Ltd. today announced its un-audited financial results for the 2nd Quarter ending 31st March 2008 with PBT increasing to Rs 38.32 crore, an increase of 77 percent. The company has recorded a turnover of Rs 940 crore, an increase of 11 percent over the corresponding Quarter.

Highlights of the Quarter ended 31st March 2008

EBITDA of Rs 81.54 crore, as compared to Rs 62.40 crore in the corresponding quarter of the previous year

PBT soars to Rs 38.32 crore as against Rs 21.66 crore of the corresponding quarter

Earning per share (EPS) at Rs 7.48 for the Quarter

Dr Raghupati Singhania, Vice Chairman & Managing Director said, ‘JK Tyre continues to maintain its growth momentum, with sales and profits achieving newer heights. This pace will get accelerated with the implementation of the expansion projects now well under way.’

For the half year ended 31st March 2008, JK Tyre has achieved turnover of Rs 1,764 crores. Profit before tax at Rs 72.52 crore has been more than doubled. Profit after tax for the half year is at Rs 44.76 crore.

Caparo to make and sell Hyundai luxury buses in India

With the coming of Hyundai buses, the likes of Volvo will have more competition in the Indian market

Caparo India has tied up with Hyundai Motor, to manufacture Hyundai’s luxury buses in India. The company plans to set up a greenfield facility in southern India, where the Hyundai Aerobus will be made for the Indian market. It’s expected that the facility will be set up on a 20-acre site, and will initially employ about 200 people.

Sunil Pahilajani, MD and CEO, Caparo India, says that the plant will operate as a fully owned subsidiary of Caparo India, under its Caparo Vehicle Products India division, and production will start early next year. The Hyundai Aerobus will be made in three variants, with powertrains ranging from 320 to 380HP. The buses will be assembled from CKD kits, and to start with, annual capacity will be about 1,500 units.

From CKD kits, Caparo and Hyundai will gradually move to introducing local components, starting with the chassis and moving on to other parts. The buses are likely to carry Caparo-Hyundai branding, although all sales and marketing activities will be handled by Caparo India. Caparo will make royalty payments to Hyundai for each bus sold, but exactly how much this sum would be, has not been revealed.

In order to take on established players like Volvo, the Caparo-Hyundai buses will be fitted with quiet, powerful, efficient and Euro IV-compatible engines, sophisticated suspension for very good ride quality, anti-lock brakes for enhanced safety, and ergonomically-designed seats for passenger comfort. No word yet on pricing, but stay tuned for more details soon.

M&M and FEV collaborate on hybrid Scorpio

With a bit of help from FEV, the Mahindra Scorpio goes diesel-electric hybrid!

Mahindra & Mahindra, along with FEV, a leading developer of advanced powertrain and vehicle technologies, recently announced a diesel-electric hybrid version of the Scorpio SUV. The hybrid version of the vehicle was developed by Mahindra, with support from FEV. FEV contributed its expertise in hybrid powertrain systems development and integration, as well as software development, to support Mahindra in the development of the vehicle – the first of its kind in the Asian market.

‘The Scorpio is a clear indicator of the enormous implications of globalization on the changing paradigm in vehicle development,’ said Gary Rogers, President and CEO, FEV Inc. ‘A rapid advancement of technology is occurring on a global scale, and our OEM customers are increasingly leveraging FEV’s global presence to ensure around-the-clock development of new powertrain and vehicle concepts,’ he said.

‘FEV has been a very receptive and experienced partner in the program and is known for their H/EV work across the globe. With their support, we were able to meet our aggressive targets. They have made a valuable contribution to the development of the Scorpio Hybrid,’ said Dr. Arun Jaura, Chief Technology officer, Mahindra Group.

The Mahindra Scorpio diesel-electric hybrid EV is fitted with Mahindra’s 2.2-litre common-rail diesel engine and an electric motor that makes 30KW and 270Nm of peak torque. The hybrid vehicle is also fitted with a six-speed automatic gearbox, and offers a seamless driving experience, with the vehicle’s electronics deciding when to use the electric motor and when to switch over to the diesel engine.

Greaves Cotton to start making diesel engines for four-wheeler good carriers

Greaves Cotton Ltd (GCL) has announced that it would start making diesel engines for four-wheeler goods-carriers. The company already makes diesel engines for three-wheelers, but according to P Sachdev, MD and CEO, GCL, ‘The three-wheeler goods carrying segment suffers setbacks because of high interest rates, inflation and lack of credit. To ensure growth, we have to enter other segments like the four-wheeler goods carriers.’

Sachdev also said the company would set up a new unit in Gummudipoondi (about 50km from Chennai) to make petrol engines for specialised vehicles, at an outlay of Rs 100 million.

ZF to manufacture HCV and off-highway vehicle transmissions in Pune

German company, ZF Friedrichshafen is planning to set up a wholly owned subsidiary in Pune, at an investment of 20 million euros, to localise production of nine-speed transmissions for for heavy trucks, and transmissions and axles for the backhoe loader segment.

The company will operate through its 100 percent subsidiary, ZF India, and the Pune plant is expected to be operational by mid-2009. ZF wants to localize production of some of its driveline and chassis components used in India, and also source components from India for its worldwide operations, hence the decision to set up this new plant in Pune.

ZF currently caters to the Indian construction equipment, automotive, and material handling industries, most of which have shown significant growth over the last few years. The company already has a presence in India through its various manufacturing facilities for steering components, chassis and suspension parts. The group’s Indian facilities include ZF Steering Gear India (near Pune), Bharat Gears (at Mumbra, near Mumbai) and Sona Semic Lemford Components (at Gurgaon, near Delhi).

Already catering to clients like Telco, JCB India, BEML, Schwing Stetter, Greaves Cotton, Ashok Leyland, AMW and Force MAN, ZF will now focus on building a strong after-sales network and appoint service dealers in key locations across the country. And finally, ZF is also said to be contemplating setting up an R&D centre in India.

Bharat Forge signs MoU for manufacturing facility at Baramati

Bharat Forge inked an MoU last week with the Government of Maharashtra, for its Centre for Advanced Manufacturing at Baramati. The company is actively pursuing opportunities in areas like aerospace, marine, rail, power, energy, mining and construction equipments.

Bharat Forge, the flagship company of the US$2.1 billion Kalyani Group, is betting big on this new Centre for Advanced Manufacturing (CAM), which will make advanced, high-tech and mission-critical components for the above industries. The CAM will allow the company to cater to its global customer base and will carry out engineering, validation and design work for these sectors. With companies like Boeing and Airbus looking at sourcing components from India, the new CAM facility will give Bharat Forge an opportunity to ramp up its business to an altogether new level.

The MoU was signed by Principal Secretary (Industries), Government of Maharashtra, VK Jairath, and Chairman and Managing Director, Bharat Forge, Baba N Kalyani, in the presence of Maharashtra Chief Minister Vilasrao Deshmukh, and other senior State officials. ‘The Government is determined to consolidate Maharashtra’s position as the no.1 industrialised State in the country, and I am confident that this new facility will accelerate the industrial growth of the region,’ said Deshmukh.

‘The Centre for Advanced Manufacturing is the first major project of our company that is located outside Pune. We are happy that we have had the opportunity to locate our project in Baramati, and we will ensure that we take the people of Baramati with us and make them our partners in progress and prosperity,’ said Baba Kalyani.

Baba Kalyani also said that the new Baramati facility would help the company increase its share of non-automotive business to 25 percent by 2008-09, and to 40 percent in the next five years. This, he said, was important in order to hedge against global cyclity, which the auto/commercial vehicle industry is prone to.

Asia Motor Works to expand capacity

Asia Motor Works (AMW) has announced the investment of Rs 500 crore towards the expansion of its auto components business. The company, which manufactures wheels for cars, tractors and trucks, will increase capacity from two million to 15 million units per annum. AMW will also increase the number of its press shops from the present six, to 42.

‘We have invested around Rs 500 crore for the expansion and we are in the commissioning stages, which would be done between July-September this year,’ said Anirudh Bhuwalka, AMW’s Managing Director and CEO. The company has raised funds for expansion through a combination of debt and equity, he said.

‘We plan to increase our turnover to Rs 1,300 crore in 2009-10, from our auto component business,’ said Bhuwalka.

Toyota Innova gets government approval

Indian Government officials will soon be driven around in the Toyota Innova

Toyota Kirloskar Motor Pvt Ltd has announced that the company has received an approval for supplying the Innova, a multi-utility vehicle, to the government. ‘The Government of India has accorded the Directorate General of Supplies & Disposals (DGS&D) rat